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Page 20 of 20 |
What are c corporations? |
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C Corporations are ordinary business corporations that have not elected to be treated as Subchapter S corporations.
They have some very strong advantages:
Limited liability,
No restriction as to the number of shareholders,
Fewer problems with passive loss rules,
Favorable loss carry-forward rules, and
liberal fringe benefit opportunities.
C Corps suffer from several drawbacks such as:
Two levels of taxation,
Subject to accumulated income tax, and
Pass-through of losses to investors is not available.
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